Crypto regulation has been the center of attention for regulators and lawmakers across the globe. Various organizations have also highlighted the need for an effective and efficient global crypto regulatory framework.
Recently, Mark Branson, President of the Federal Financial Supervisory Authority (BaFin), the financial regulator in Germany, has requested the global authorities to cooperate and sanction relevant laws on the digital assets sector. He claims the laws provide additional investor protection and also prevent the usage of assets in illegal activities.
Branson also criticizes the current overview regime of the crypto sector and calls it not strict enough to keep bad actors in check. He also says that “just let the industry grow as a playground for grownups” has been a wrong move. He calls on all the nations to come together to articulate a comprehensive regulatory framework as soon as possible.
“Now is the time for serious cryptocurrency regulation. The most important point is that it doesn’t need a European solution. It needs a worldwide solution.”
The regulator has previously been an advocate of blockchain technology and said that it brings innovation. Todayq News reported in November that he also opined that the current crypto sector does not threaten financial stability.
However, he has acknowledged the exploitation of decentralization by bad actors like “freeloaders and crooks” to harm investors. He has also warned consumers to be aware of the projects they invest in, as some carry significant risks.
In the race for global crypto regulation, Germany’s view has also been supported by the G-20 members. The group has revealed plans to develop a global crypto policy to inform the global digital assets sector regulation.
On December 14, Ajay Seth, secretary of economic affairs in India, said that the members have called for a policy following the increasing popularity of digital assets and its implications on the economy and monetary system.
The members also seek to look into the role of crypto in the banking sector. The aforementioned regulatory plans were unveiled during the group’s finance and central bank deputies meeting in India.
Seth added that the regulation should flow from the policy view taken, and the policy framing has been marked as a priority for the countries.
India is holding the presidency of G20 for this term. The group has 19 member countries alongside the European Union, which includes Germany, is a member of it. While India has been previously criticized for its crypto regulation regime, its efforts toward implementing crypto regulation are noteworthy.
In October, Nirmala Sitharaman, the finance minister of India, also announced that the country seeks to develop standard operating procedures (SOPs) for cryptocurrency during its G20 presidency from December 1, 2022, to November 30, 2023. Indians have also shown a significant interest in crypto adoption, as about 115 million were estimated to invest in crypto despite the regulatory uncertainty.
The industry participants have accused the country of crippling the sector and criticized the concept note of its CBDC. The central bank received backlash from the industry, alleging the government is trying to kill the sector.
Earlier this month, Bharat Web3 Association (BWA), a prominent Indian community of cryptocurrency advocates, submitted recommendations to the finance ministry ahead of the upcoming budget session 2023-2024. In its draft of recommendations and concerns, the group has highlighted the 30% taxes on cryptocurrency and the uncertainty over regulations as highly problematic.